ATM fees are at a record high, study finds. Here's why.

Getting cash from an ATM is growing increasingly expensive as fees reach record highs.

Americans are now paying an average of $4.86 for out-of-network ATM withdrawals, up 1.9% from $4.77 last year, according to a new survey from Bankrate.com. That's the highest on record, according to the personal finance website, which starting tracking ATM fees 27 years ago.

"ATM fees are just one of those avenues that the bank can very freely continue to charge fees," Bankrate financial analyst Stephen Kates told CBS MoneyWatch.

Those costs include charges from both ATM owners and banks. According to the survey, the average fee from cash machine providers is $3.22. Banks charge $1.64 on average, up 3.8% from 2024 — the highest since 2018. As a result, Americans in certain metro areas could see average combined fees of more than $5.

For its survey, Bankrate polled a total of 10 banks and financial institutions in 25 of the nation's largest metro areas. Atlanta topped the list for highest ATM costs, with an average out-of-network fee of $5.37. Behind Atlanta are Phoenix and San Diego, where ATM charges average $5.35 and $5.31, respectively.

Boston and Seattle had the lowest average rates among the metro areas surveyed — $4.37 and $4.42, respectively.

The problem, said Kates, is that while there have been regulatory rumblings around curbing overdraft fees, resulting in voluntary caps by financial institutions, there are no limits on how much banks can charge for ATM withdrawals, giving them free rein to hike fees as much as they want. And since the charges apply to people outside the bank's network, there's no risk of it losing customers.

"It's one of the ways for the bank to certainly make money, and it's one of the ways to do so that doesn't really hurt their own customers," Kates said.

Higher fees also help ATM owners and banks make up for lost revenue as consumers gravitate away from using cash and toward digital payments, said Kates. Also, online banking has nearly eliminated the need for automated bank tellers. According to a survey conducted by Morning Consult on behalf of the American Bankers Association last year, only 5% of customers relied on ATMs to manage their bank accounts.

To be sure, reliance on cash hasn't disappeared altogether. The Federal Reserve Bank of Atlanta found that cash was still Americans' primary form of payment as of October 2024 — whether for a trip to an old-school laundromat or a vexingly cash-only restaurant.

"Fewer and fewer people need to use cash for certain things, but there are some times when you have to have it," said Kates.

Avoiding high ATM fees requires a bit of strategy and forethought, as you may not always be near a bank-affiliated ATM when you need to withdraw cash.

In such a situation, one option is to get cash back at a local store. Kates also encourages people to look at their banking app to see which ATMs are close to them.

If you need to withdraw cash on a regular basis, but live in an area where there aren't any ATMs in-network, you may want to consider changing where you bank to accommodate your needs. Certain online financial services like Fidelity, for instance, reimburse customers for ATM fees — making them a more attractive option.

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